There is no better way to get the common man involved in alternative power generation sources than giving him financial incentives. Even if he does not care about the implications of green power for the environment, he will surely care about the cash he can save by using eco-friendly power. In the state of Idaho there are 5 basic financial incentives offered in the residential sector for using renewable energy sources. These are listed out below.
Residents of a building using solar, wind, geothermal and certain biomass energy devices can qualify for a personal deduction of up to $5,000 per year, and a total deduction of $20,000. It is divided into a 40% residential alternative energy tax deduction the first year, followed by 20% deduction for the next three years.
Production Incentive – residents who have installed PV or wind energy systems after June 1, 2002 have the option to sell environmental attributes known as “Green Tags” to the Northwest Solar Cooperative. There is no fixed duration for the contract term, but the production-based payments will continue till the end of 2009. The payment is two cents per each kilowatt produced up to December 2009.
Sales Tax Refund – A sales tax refund of 100% on renewable energy equipment is available for equipment that is capable of generating at 25 kw of power. This tax rebate is effective till 2011, and can be claimed from the Idaho State Tax Commission, if applied for in time. For exact details check the information with the ISTC.
State Loan Program – Low-interest energy loan programs are available for active alternative energy generating projects. You can use solar, wind, geothermal, hydropower, and certain biomass technologies, to power your facilities and avail of a 5-year loan at a low interest rate of 4%. This feature is applicable to non-residential, commercial, and agricultural sectors. There is a limit of $15,000 for the residential sector, and $100,000 for other sectors.
Utility Rebate Program – Under this incentive plan, residents who install and use efficient alternative energy gadgets will be eligible for utility rebates. Naturally, the devices will have to conform to the acceptable set standards, for which they will be inspected. After that is done residents can look at incentives ranging from $25 to $900, depending on the gadgets that they are using. There is even an incentive for insulating your existing home in terms of floor, wall, windows, attic and ceiling.
All in all it can be quite profitable to go green in the residence.
Source – http://www.dsireusa.org/incentives/homeowner.cfm?state=ID&re=1&ee=0
Disclaimer: This article does not constitute a source of a official legal or financial advice. While we attempt to represent all data as accurately as possible, we advice you to refer to official government websites, for the most accurate and up-to-date information.
I think these grants/incentives really are a great way to entice Idaho people to turn to alternative power sources. It’s a type of investment that I think is 99.9% worth it and people should really consider it before dismissing it completely.
this is a great way to encourage people to use renewable power. hope other leaders implement this on their state too.
I think once alternative energy sources become more cheap to the general public you will start to see a massive shift away from traditional power sources to these new better sources of clean energy.
@ Chicago – you are probably right. Let’s hope that happens soon.
How I wish alternative power become common here in our country so our power company will stop monopolizing it and lower down the power rates.